Megatherm Induction Limited (MEGATHERM)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Megatherm Induction's revenue was ₹187 Cr (+8.1% year on year, +17.6% on the previous half-year), and net profit ₹12.0 Cr (+0.0% year on year); the operating margin was 9.6%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹187 | +8.1% | +17.6% |
| Operating profit | ₹18.0 | -14.3% | +12.5% |
| Net profit | ₹12.0 | +0.0% | +0.0% |
| EPS (₹) | 6.18 | -3.0% | -3.3% |
| Operating margin | 9.6% | — | — |
MEGATHERM delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 79.31% of the MEGATHERM shares traded on NSE were taken to delivery, against the stock's own 20-session average of 77.01%. That is close to its usual level. Turnover was only ₹31 lakh, so a handful of trades can move this figure. Volume was 0.4 times its average, well below normal.
Delivery in the last 5 sessions: 68.4% · 64.6% · 81.6% · 83.9% · 79.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Megatherm Induction Limited announced that CRISIL Ratings has upgraded its credit ratings across Rs 105 crore of bank loan facilities. The long-term rating was raised from CRISIL BBB/Stable to CRISIL BBB+/Stable, while the short-term rating was revised upward from CRISIL A3+ to CRISIL A2. The facilities comprise Rs 50 crore in cash credit limits and Rs 55 crore in non-fund based limits across Indian Bank, YES Bank, and State Bank of India. The upgrade reflects strengthened creditworthiness and operational stability against its TTM revenue base of Rs 667 crore.
- Total bank facilities rated stand at Rs 105 crore across fund-based and non-fund-based limits
- Long-term bank loan rating upgraded to CRISIL BBB+/Stable from CRISIL BBB/Stable
- Short-term bank loan rating upgraded to CRISIL A2 from CRISIL A3+
- Facility breakup includes Rs 50 crore cash credit and Rs 55 crore non-fund based limits
Megatherm Induction Limited submitted the Scrutinizer's Report for its 16th Annual General Meeting held on August 29, 2026. All four resolutions were passed unanimously with 100% approval across 13,692,329 votes cast. Approved items include the adoption of FY26 audited financial statements, director reappointment, reappointment of statutory auditor M/s M S K A & Associates LLP, and ratification of cost auditor remuneration for FY27.
- All 4 resolutions approved with 100% of valid votes (13,692,329 votes) cast in favour
- Adoption of FY26 audited financial statements approved unanimously
- Reappointment of M/s M S K A & Associates LLP as Statutory Auditors confirmed
- Remuneration of Cost Auditor for FY 2026-27 ratified with 100% voting support
Megatherm Induction Limited concluded its 16th Annual General Meeting (AGM) on August 29, 2026, conducted via video conferencing with 18 members in attendance. Shareholders voted on four resolutions, including the adoption of FY2025-26 audited financials, the re-appointment of director Mr. Satadri Chanda who retired by rotation, and the re-appointment of Statutory Auditors M/s MSKA & Associates LLP for a second 5-year term. Statutory, Secretarial, Cost, and Internal Auditors all expressed unqualified opinions in their audit reports for FY2025-26. Final e-voting scrutinizer results are scheduled to be declared on or before September 1, 2026.
- 16th AGM conducted on August 29, 2026, between 12:35 PM and 1:12 PM IST with 18 members attending via VC
- Key resolution proposed to re-appoint Statutory Auditors M/s MSKA & Associates LLP for a 5-year term (16th AGM till 21st AGM)
- Remote e-voting was held from August 26 to August 28, 2026, based on the cut-off date of August 22, 2026
- All auditors (Statutory, Secretarial, Cost, Internal) delivered unqualified opinions for FY2025-26
Megatherm Induction Limited has scheduled its 16th Annual General Meeting (AGM) for August 29, 2026, at 12:30 PM IST via video conferencing. The company has dispatched physical letters to shareholders whose email IDs are not registered, providing the web link to the FY 2025-26 Annual Report. This follows a cut-off date of July 31, 2026, for identifying such shareholders. The filing is a standard regulatory compliance procedure under SEBI (LODR) Regulations.
- 16th Annual General Meeting scheduled for August 29, 2026, at 12:30 PM IST
- Cut-off date for identifying shareholders for physical dispatch was July 31, 2026
- Annual Report for FY 2025-26 made available via a dedicated web link for non-registered email holders
- Compliance maintained under Regulation 36(1)(b) of SEBI LODR Regulations
Megatherm Induction Limited has scheduled its 16th Annual General Meeting (AGM) for August 29, 2026, to be held via video conferencing. Key agenda items include the adoption of audited financial statements for the year ended March 31, 2026, where the company reported TTM revenue of ₹667 Cr and PAT of ₹45 Cr. Shareholders will also vote on the re-appointment of M/s. M S K A & Associates LLP as Statutory Auditors for a second five-year term. The cut-off date for voting eligibility is set for August 22, 2026.
- 16th Annual General Meeting scheduled for August 29, 2026, at 12:30 PM IST
- Cut-off date for determining voting rights is August 22, 2026
- Proposed re-appointment of Statutory Auditors for a consecutive 5-year term until the 21st AGM
- Ratification of ₹55,000 remuneration for Cost Auditor M/s. Amit Khetan & Co for FY 2026-27
- Remote e-voting period spans from August 26, 2026 (9:00 AM) to August 28, 2026 (5:00 PM)
Megatherm Induction Limited has approved the formation of a new Joint Venture (JV), Sictech India Private Limited, with Spanish partner SicTech, holding a 49% stake to manufacture induction converter modules using proprietary SicMosfet technology. The board also authorized an unsecured loan of up to USD 500,000 (approx. ₹4.15 Cr) to its US-based entity, Megatherm Cyprium INC, to support working capital and operational needs. Additionally, MSKA & Associates LLP has been reappointed as Statutory Auditors for a second five-year term. These steps reinforce the company's strategy to upgrade its technology stack and expand its international footprint.
- Formation of Sictech India Pvt Ltd with a 49% stake for Megatherm and 51% for SicTech.
- Approval of an unsecured loan not exceeding USD 500,000 to the US-based Megatherm Cyprium INC.
- The loan amount represents approximately 2.5% of Megatherm's current net worth of ₹165 Cr.
- Reappointment of MSKA & Associates LLP as Statutory Auditors for a 5-year term until the 21st AGM.
- JV focus on manufacturing induction converter modules based on proprietary Discrete Power Semiconductors (SicMosfet).
Megatherm Induction has approved the formation of a new Joint Venture (JV), Sictech India Private Limited, with Spanish firm Smart Induction Converter Technologies S.L. (SicTech). Megatherm will hold a 49% stake in the JV, which will manufacture induction converter modules using proprietary SiC MOSFET technology. Additionally, the board approved an unsecured loan of up to USD 500,000 (approx. ₹4.15 Cr) to its US subsidiary, Megatherm Cyprium INC, to support working capital. The company also reappointed MSKA & Associates LLP as statutory auditors for a second five-year term.
- Formation of a new JV, Sictech India Private Limited, with Megatherm holding a 49% equity stake.
- Approval of an unsecured loan not exceeding USD 500,000 to US-based Megatherm Cyprium INC.
- JV to utilize proprietary SicTech technology based on Discrete Power Semiconductors (SicMosfet).
- Reappointment of MSKA & Associates LLP as Statutory Auditors for a 5-year term until the 21st AGM.
- The loan to the US subsidiary represents approximately 2.5% of the company's current net worth of ₹165 Cr.
Megatherm Induction Limited has announced a virtual one-on-one meeting with a Portfolio Management Service (PMS) scheduled for July 31, 2026, at 3:00 PM. The meeting is being organized by their Investor Relations firm, Kaptify. The company, which has a TTM revenue of ₹667 Cr and a market cap of ₹391 Cr, stated that no unpublished price-sensitive information (UPSI) will be discussed. This interaction is part of the company's routine investor engagement strategy.
- One-on-one virtual meeting scheduled for July 31, 2026, at 3:00 PM IST
- Interaction organized by Investor Relations firm Kaptify
- Company maintains a TTM revenue of ₹667 Cr and PAT of ₹45 Cr
- Promoter holding remains stable at 71.8% as of March 2026
Financial Performance
Revenue Growth by Segment
The steel segment is currently experiencing a growth rate of 6-7%, with potential to reach 9% as government infrastructure projects accelerate. Overall revenue grew 15% in FY24 to INR 306.83 Cr and 4% in FY25 to INR 320.51 Cr. H1 FY26 revenue was approximately INR 159 Cr.
Geographic Revenue Split
The gap between domestic and export revenue for induction products is narrowing. The company is aggressively targeting the US market through its Cyprium JV to increase export contribution.
Profitability Margins
Operating margins are expected to remain stable at 10-11% over the medium term. The company reported a healthy Return on Capital Employed (ROCE) of 20-25%.
EBITDA Margin
Operating margins (EBITDA equivalent) are targeted at 10-11%, supported by backward integration and the ability to pass on raw material price volatility to consumers.
Capital Expenditure
The company added capacity that now supports a revenue potential of INR 450 Cr to INR 550 Cr. It benefits from the MCIP subsidy, which provides 20% of CapEx as a central government incentive.
Credit Rating & Borrowing
Ratings were upgraded to CRISIL BBB/Stable/CRISIL A3+ in December 2023 and reaffirmed in March 2025. The capital structure is robust with a gearing ratio of 0.23 times as of March 31, 2025.
Operational Drivers
Raw Materials
Steel and copper are primary raw materials for induction furnaces and transformers. Specific percentage of total cost for each is not disclosed.
Capacity Expansion
Current installed capacity is sufficient to achieve a revenue target of INR 450-550 Cr. The company aims for a long-term target of INR 1,000 Cr revenue.
Raw Material Costs
Raw material costs are susceptible to volatility; however, the company maintains a better ability to pass these costs to consumers, maintaining margins around 10-11%.
Manufacturing Efficiency
Manufacturing efficiency is driven by in-house technology and a reference-based sales model that accelerates growth once initial equipment is sold in a new country.
Strategic Growth
Expected Growth Rate
9%
Growth Strategy
Growth will be achieved through the Cyprium JV in the US (50% profit share), heavy investments in global trade fairs to become an alternative to Inductotherm, and expansion into the domestic transformer segment. The company leverages its in-house technology to maintain a competitive edge.
Products & Services
Induction furnaces for steel making, foundry, forging, heating, and hardening equipment, as well as transformers.
Brand Portfolio
Megatherm
New Products/Services
Transformers in the domestic segment and induction products in the export market are identified as high-growth generators.
Market Expansion
Targeting the US market through the conversion of the Cyprium JV from an LLC to an Inc. to facilitate smoother fund transfers and 50/50 profit sharing.
Market Share & Ranking
The company competes directly with Electrotherm and Inductotherm, particularly in the induction furnace for steel making segment.
Strategic Alliances
Joint Venture with Cyprium (USA) for manufacturing in India and selling at US market prices.
External Factors
Industry Trends
India is becoming a global hub for induction products. The industry is seeing a narrowing gap between domestic and export demand for capital goods.
Competitive Landscape
Key competitors include Electrotherm and Inductotherm. Megatherm competes by offering in-house technology and targeting specific segments like steel making furnaces.
Competitive Moat
The moat is built on in-house technology and established relationships with major industrial clients like Tata Motors and Shyam Metalics, which provide high switching costs and reference-based growth.
Macro Economic Sensitivity
Revenue is sensitive to government infrastructure spending; a lack of budgeted infra spending can keep growth at 6% vs a potential 9%.
Geopolitical Risks
Fund transfer issues with the US LLC led to a structural change into an Inc. to ensure operational continuity.
Regulatory & Governance
Industry Regulations
Operations are subject to Ministry of Electronics (Central Government) guidelines for CapEx subsidies.
Taxation Policy Impact
The company benefits from the MCIP (Ministry of Electronics) subsidy of 20% on CapEx. It is not affected by the West Bengal government's revocation of industrial incentives as it did not factor them into calculations.
Risk Analysis
Key Uncertainties
The primary risk is associated with the time taken for initial approvals and creating references in new export markets, which can slow initial growth phases.
Geographic Concentration Risk
The company is diversifying from its domestic base in India to the US market to mitigate geographic concentration risk.
Third Party Dependencies
Dependency on listed clients like Shyam Metalics and Tata Motors for 25-30% of revenue.
Technology Obsolescence Risk
Mitigated by maintaining in-house technology and positioning as a global alternative to established players like Inductotherm.
Credit & Counterparty Risk
The company maintains a healthy order book of INR 327.78 Cr (as of Feb 2025) and receives large customer advances, which mitigates counterparty risk.
